An American trade group has warned that the government in China is ready to invest companies for consumer boycott of foreign shoe, clothing and other brands
BEIJING – An American trading group warned on Tuesday that consumer boycott of foreign shoe, clothing and other brands by the government in China made companies less inclined to invest.
Concerns are mounting over Beijing’s plan to list “unreliable entities” to be punished for actions deemed to run counter to Chinese interests, the US Chamber of Commerce said in an annual report on business conditions.
The report highlights the growing uneasiness between American and other foreign companies about the impact of economic and strategic tensions between Beijing and their home countries.
Brands including Swedish retailer H&M, Adidas and Naik have been targeted based on online demands for consumer boycott. This came after the state media criticized him for expressing concern over reports of possible forced labor by ethnic minorities in the Xinjiang region of China’s northwest.
The American Chamber said that 78% of companies in their survey responded that the “growing concerns” between Beijing and Washington were their top concern.
Beijing announced plans for its “untrusted entities” list in 2019, with then-President Donald Trump blocking access to US components and technology for Chinese tech giant Huawei Technologies Limited. Officials have not yet said which companies may be on the list or disclose the criteria. Is being included.
The chamber said the list was “agitated by consumer boycott provoked by official organizations and through the Chinese media.”
Despite this, half of the companies surveyed said China’s investment climate was improving, while 38% said it remained the same. The Chamber said only 12% reported conditions had worsened, the lowest level since 2015.
The Chamber said that 27% of information and computer technology companies said investment conditions were deteriorating, the highest level of any industry. The discovery comes at a time when the ruling Communist Party is using subsidies, market constraints and informal pressure on companies to develop their high-tech industries.